Hundreds of economists and I, a business manager, issued an "emergency call" this morning (Wednesday), warning of serious harm to the Israeli economy, following Justice Minister Yariv Levin's plan to weaken the justice system.
According to the signatories, the Israeli economy is highly regarded in the world, partly due to a strong and independent judicial system, so that damage to it could cause unprecedented damage to the economy.
"The existence of a lot of political power in the hands of the ruling group without strong checks and balances could lead the country to economic backwardness," they wrote.
The economists warned against the reduction of investments in Israeli high-tech, which is a significant engine for the economy, the transfer of international development centers from Israel due to the fear of harming human rights, and also present a fear of a "brain drain" from Israel, which would damage the resilience of the Israeli economy.
Among the signatories to the call: Nobel Prize winner in economics Prof. Daniel Kahneman, former chairman of the National Economic Council Prof. Eugene Kandel and Prof. Manuel Trachtenberg, Prof. Omer Moab, who was an advisor to the former Minister of Finance Yuval Steinitz, Director General of the Ministry of Finance Former Prof. Avi Ben-Best and other senior officials.
The call was also signed by ten professors of economics, from governors of the Bank of Israel, past and present presidents of the Israel Economic Association, past and present directors of the Ministry of Finance, and more.
Yesterday, Prime Minister Benjamin Netanyahu met with Bank of Israel Governor Prof. Amir Yaron at the Prime Minister's Office in the Knesset.
At the meeting, the governor warned Netanyahu against damage to Israel's credit rating as a result of the implementation of the legal reform - according to a publication by News 12. "The world is following with concern the developments that may keep international companies away from investing in the country," he said.
In his review, Governor Prof. Yaron referred to the challenges facing the Israeli economy, both locally and from an international perspective.
He also reflected to the Prime Minister various issues that arose in the Israeli context in the discussions he had with the senior officials of the global economy, as well as with the senior officials of the rating companies in recent weeks.
In addition, a strategic plan formulated by the Bank of Israel was presented, which includes economic policy recommendations in a variety of areas - and in particular in preparation for the upcoming Settlements Law.
The meeting was held against the backdrop of warnings by former Bank of Israel Governors Karnit Flug and Yaakov Frankel, joined by Governor Prof. Yaron, of the consequences of the reform of the legal system on the Israeli economy, as well as interviews by one of the senior executives of the world's largest credit rating company, S&P Global Ratings.
In them, the senior warned of an apparent damage to the country's credit rating if the reform is approved.
According to him, the rating will be damaged if a meeting is held in the democratic institutions, led by the judiciary - and they will weaken significantly.
news
News in Israel
Events in Israel
Tags
Manuel Trachtenberg
Daniel Kahneman
economy
Rival Levin
